defensive stocks
Stable market holdings
Defensive stocks are shares in companies whose earnings remain relatively stable regardless of economic conditions.
These typically include utilities, healthcare, and consumer staples—things people need even during recessions.
Investors shift toward defensive stocks when they expect economic downturns: With recession fears mounting, she moved her portfolio into defensive stocks.
The opposite category is cyclical stocks, which rise and fall with the broader economy.
- utilitiesEssential infrastructure services
- utility billsFees for household services
- dividendsProfits paid to shareholders
- recessionProlonged economic decline
- stableSecure and unchanging
conservative · blue-chip · portfolio · bonds · healthcare · essential goods · yield · steady income · shelter · bear market · safe haven · flight to safety · steady · reliable · income · risk-averse · tobacco · pharmaceuticals